DEFENSE LOGISTICS AGENCY

 HEADQUARTERS

 8725 JOHN J. KINGMAN ROAD

 FORT BELVOIR, VIRGINIA 22060-6221

January 19, 2021

MEMORANDUM FOR SUPPLY DISCREPANCY REPORTING PROCESS REVIEW 

COMMITTEE (PRC)

SUBJECT: Approved Standards Change (ASC) 1397, Redistribution Order (RDO) and 300 

Series Reply Code Requirements (SDR)

The attached change to Enterprise Business Standards, as outlined in the attachment, is 

approved for implementation.

Addressees may direct questions to Mr. Ben Breen, e-mail: EBSO.SDR@dla.mil. Others must 

contact their designated PRC representative available at 

http://www.dla.mil/HQ/InformationOperations/DLMS/allpoc/

THOMAS A. DELANEY 

Director, Enterprise Business Standards Office

Attachment

As stated 

cc: 

ODASD(Logistics)
Attachment, ASC 1397

Page 1

ASC 1397

Redistribution Order (RDO) Supply Discrepancy Reports (SDR) and 

300 Series Reply Code Requirements

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: Mr. Corbin Austin, 

DLA J344 Technical and Quality Programs, e-mail: john.austin@dla.mil.

2. FUNCTIONAL AREA LOGISTICS AND TRANSACTION CHANGES: Supply 

Discrepancy Reporting (SDR).

3. REFERENCE: DLM 4000.25, Defense Logistics Management Standards, Volume 2, 

Supply, Chapter 17, Supply Discrepancy Reporting.

4. APPROVED CHANGE(S):

a. Brief Overview of Change: This change updates current procedures for shipping 

activities to no longer respond with disposition Reply Code 123 when confirming balances 

associated with RDO shortages and wrong item discrepancies. For customer SDRs (document 

type code 7) shipping activities will also be required to provide a 300 series forwarding reply 

code in combination with Reply Code 105, 118 and 119.

b. Background: Currently when an SDR is reported for a RDO involving a shortage or 

wrong item discrepancy, the shipping activity conducts an inventory and determines whether an

inventory balance error exists. If the inventory confirms a balance error, the shipping activity 

will respond using Reply Code 123 citing inventory conducted and verified shipment error. For 

customer-generated type 7 SDRs, when a Reply Code 105 is sent without an applicable 300-

series reply code it prevents the source of supply from establishing a pre-positioned material 

receipt (PMR) for the return shipment which ultimately leads to the material being receipted 

without PMR and a type 8 SDR being submitted. When the shipping activity responds with 

Reply Code 118 without an applicable 300-series reply code prevents the source of supply from

billing the customer for the material overage they retained. A shipping activity should not 

provide a Reply Code 119 without an applicable 300-series reply code because the shipping 

activity does not own the material which was shipped and the source of supply should determine 

if the financial impact is acceptable. 

c. Approved Change in Detail:

(1) When the shipping activity conducts an inventory associated with a RDO 

shortage and confirms a balance error, the shipping activity will reply with Reply Code 126 

citing inventory conducted confirm shipment error; accountable record corrected; no materiel 

will be shipped.

(2) When the shipping activity conducts an inventory associated with a RDO 

wrong item and confirms an overage of the correct national stock number (NSN), the shipping 

activity will respond with Reply Code 126, citing inventories conducted on both NSNs confirm 

shipment error; accountable record corrected; no materiel will be shipped.
Attachment, ASC 1397

Page 2

(3) When the shipping activity replies to a customer type 7 SDR directing the 

customer to forward the material received (Reply Code 105), a debit is processed for material 

retained (Reply Code 118), or the customer retain the material received at no charge (Reply Code 

119) the shipping activity must include the applicable 300-series reply code. 

d. Revisions to Defense Logistics Manuals: Update Defense Logistics Management 

Standards Volume 2, Chapter 17 Supply Discrepancy Reporting as shown in the enclosure.

e. Approved Transaction Flow: Standard SDR flow.

5. REASON FOR CHANGE: Allowing a shipping activity to process the above SDR reply

codes without forwarding the SDR to the source of supply, prevents the source of supply from 

creating the MRO, PMR and debiting the customer.

6. ADVANTAGES AND DISADVANTAGES:

a. Advantages: 

(1) Improves Component's Auditability 

(2) Physical APSR and Financial APSR records are aligned.

b. Disadvantages: None identified.

7. ADDITIONAL COMMENTS TO CONSIDER: None noted.

8. ADDITIONAL FUNCTIONAL REQUIREMENTS: None noted.

9. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: Components did not 

provide the estimated implementation time line with their official staffing response.

10. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: None identified.

11. IMPACT: 

a. New/Changes to Data Elements: None identified.

b. Automated Information Systems (AIS): DLA Distribution Standard System (DSS), 

DLA Warehouse Management System (WMS), Product Deficiency Reporting and Evaluation 

Program (PDREP), GSA Vision, DLA Distribution Standard System (DSS) and Warehouse 

Management System (WMS), Army Logistics Modernization Program (LMP), Air Force 

Security Assistance and Cooperation (AFSAC), Air Force Wholesale DO35K, Air Force 

Integrated Logistics System Supply (ILS-S) SDR.

c. Defense Automatic Addressing System (DAAS): N/A.

d. Non-DLM Series Publications: None identified.
Attachment, ASC 1397

Page 3

12. PSC 1397 RESPONSE/COMMENT RESOLUTION:

 

Component Response/Comment Disposition

1. DAAS Concur as written. As noted. 

2. DLA Concurs without comment As noted.

3. ODASD(Logistics) Concurs as written. As noted.

4. US Air Force Concurs as written. As noted.

5. US Army Concurs as written. As noted.

6. USMC Concurs. As noted.

7. US Navy Concurs as written. As noted.
Enclosure, ASC 1397

Page 1

Enclosure

Defense Logistics Manual (DLM) 4000.25, Volume 2, Supply Standards and Procedures

Make the following changes to Volume 2. Additions are shown in red bold italics, and deletions 

are shown with double strikethrough text.

Chapter 17, Supply Discrepancy Reporting

Preceding text not shown

C17.3.3. SDRs Resulting from Redistribution Orders (RDOs). The following 

procedures are applicable to DLA Distribution Centers and may be applied to other 

storage activities as directed by the responsible Service/Agency. Only the current DLA 

Distribution Center can update the owner, manager, or source of supply field. 

Submitters must cancel and resubmit their SDR if they need to update this field. Only 

the current DLA Distribution Center action activity can update the owner, manager, or 

source of supply field. Submitters must cancel and resubmit their SDR if they need to 

update this field. When a storage activity receives a shipment based upon a 

redistribution order and the materiel is short, over, wrong, quality deficient, or otherwise 

discrepant the receiving activity will:

C17.3.3.1. RDO Shortage. Prepare the SDR to report shortage and use 

Action Code 1G (Reshipment not required; item to be re-requisitioned) 1D (materiel 

still required). The shipping activity will receive the action copy; the ICP will receive an 

information copy. The shipping activity receiving the SDR will treat it as a priority and 

conduct inventories as appropriate. If the inventory confirms an over balance error, the 

shipping activity will respond with Reply Code 126 citing inventory conducted 

confirm shipment error; accountable record corrected; no materiel will be 

shipped. using Disposition/Status (Reply) Code 123 (materiel will be reissued at no 

charge) citing inventory conducted and verified shipment error. If the inventory confirms 

correct balance or the balance is short, the shipping activity will reply with 

Disposition/Status (Reply) Code 126 (materiel not available for reshipment) or A Reply 

Code 701 (SDR rejected) citing inventory conducted and no overage was discovered; 

no materiel will be shipped, or, inventory conducted and shortage was identified; loss 

adjustment recorded on depot accountable record, no materiel will be shipped. 

Intervening text not shown

C17.3.3.3. RDO Wrong Item. Prepare the SDR to report receipt of wrong 

item using Action Code 1G (Reshipment not required; item to be re-requisitioned)

1D (materiel still required). The shipping activity will receive the action copy; the ICP 

will receive an information copy. The shipping activity receiving the SDR will treat it as 

a priority and conduct inventories on both the wrong item that was shipped and the 

correct item that was not shipped. No DLA Distribution Center will request or authorize 

return or movement of wrong materiel received as an RDO; the ICP/IMM will make all 

materiel movement decisions. If the inventory confirms an overage of the correct NSN, 

the shipping depot will respond with Reply Code 126, citing inventories conducted 
Enclosure, ASC 1397

Page 2

on both NSNs confirm shipment error; accountable record corrected; no materiel 

will be shipped. using Disposition/Status (Reply) Code 123 (materiel will be reissued at 

no charge), citing inventory conducted and shipment error confirmed; materiel will be 

shipped to correct shipment error. If the inventory fails to confirm an overage of the 

correct NSN, but an inventory of the wrong NSN reveals a shortage, the shipping 

activity will reply using Disposition/Status (Reply) Code 126 (materiel not available for 

shipment), citing inventories conducted on both NSNs confirm shipment error; 

accountable record corrected; no materiel will be shipped. Report wrong item receipts 

of controlled inventory, arms, arms parts, and explosives within 24 hours.

Intervening text not shown

C17.3.12.1.2.1. Interim Replies. Interim replies may be used 

to inform the submitter that an SDR has been forwarded to another organization for 

investigation or resolution. Responsible activities must provide an interim reply where a 

final reply cannot be provided within the established timeframes. Failure to meet the 

established timeframes must be caused by reasons outside the control of the ICP/IMM. 

Such interim replies will identify any other action activities involved and, when feasible, 

indicate when additional status will be provided. Identify the interim disposition/status 

using the appropriate reply code. Interim reply codes in the 300 or 500 series are 

typically used to designate an interim reply involving forwarding to another organization 

(Appendix 7.28). The storage activity will provide an interim reply when recommending 

credit be provided by the source of supply based upon a validated discrepancy. For this 

purpose, the storage activity will cite Reply Code 525 and forward the SDR using the 

applicable 300-series applicable to the source of supply for processing. of MILSBILLS 

financial adjustments under Volume 4, Chapter 4. When the storage activity forwards 

an SDR to the source of supply for action using a 300-series interim reply code, the 

SDR transaction must be formatted to identify the source of supply RIC as the action 

activity. WebSDR will provide notification of forwarding action to the SDR initiator. This 

“forwarding” process and associated format will allow the reply transaction, including the 

initial responder’s reply remarks, to be transmitted to the new action activity. WebSDR 

will recognize the new action activity for reports and Web responder role access. If no 

coding exists to specifically identify the reasons for the delay, select Reply Code 137 

and provide a clear-text explanation.

Intervening text not shown

C17.3.12.1.3.3.1. The storage activity may 

recommend credit, /debit debit for material retained, forwarding of material 

received, or material be retained at no charge via interima reply forwarded to the 

source of supply (must include applicable 300-series reply code). The storage activity 

response will be based upon research to include review of inventory records and 

physical inventory, as appropriate. WebSDR will provide an information copy of the 

storage activity reply to the SDR submitter.